Beschreibung
InhaltsangabeAcknowledgements xi 1 Introduction 1 1.1 Overview and Objectives 1 1.2 Quick Start Guide to Banking Concepts and Regulation 4 2 The Global Financial Crisis 7 2.1 From Deregulation to dotcom Crash 7 2.2 The Seeds of a Crisis 9 2.3 "Why Didn't Anyone See This Coming?" 14 2.4 The Beginnings of a Crisis 17 2.5 The Crisis Intensifies 20 2.6 Meltdown: The Lehman Bankruptcy 21 2.7 Massive Intervention Internationally 23 2.8 Sovereign Crises 29 2.9 Aftershocks and Skeletons in the Cupboard 32 2.10 Who is to Blame? 34 3 Methodologies and Foundations 37 3.1 How do Banks Make or Lose Money? 37 3.2 What's a Bank Worth? Key Issues in Accounting for Banks 41 3.3 What is Risk? 47 3.4 What is an RWA? 55 3.5 What is Capital? 61 3.6 What are Liquidity and Funding? 68 3.7 What is a Derivative? 84 3.8 MarktoMarket and Procyclicality 90 3.9 Role of Regulation, Supervision and Support 96 3.10 Ratings Agencies and Credit Ratings 101 3.11 Analysts, Investors and Financial Communication 109 4 Regulation of the Banking Industry 113 4.1 The Relevance of Bank Regulation and Supervision 113 4.2 Regulation and Supervision of the Banking Industry Prior to "Basel I" 113 4.3 The Basel Capital Accord aka "Basel I" 117 4.4 Basel II 122 4.5 Basel III 141 4.6 Resolution Regimes 163 4.7 Other Current Regulatory Workstreams 171 5 Case Studies 175 5.1 RBS 176 5.2 Dexia 179 5.3 HBOS 184 5.4 HSBC 189 5.5 Bear Stearns 192 5.6 Merrill Lynch 196 5.7 AIG 200 5.8 JP Morgan 207 5.9 Barclays 213 5.10 UBS 217 5.11 Northern Rock 221 5.12 BankiaBFA 223 5.13 Australia 228 5.14 Canada 233 5.15 Summary of "Lessons Learned" from the Case Studies 236 6 Objectives and Design Principles 239 6.1 Free Market versus State Capitalism 240 6.2 Are There Alternatives to Banks? 242 6.3 Benefi ts and Limitations of Finance 250 6.4 How Much Risk Can We Tolerate? 251 6.5 The Role of Regulation and Supervision 254 6.6 The Role of "the Market" 256 6.7 Conclusions: Proposed Objectives and Design Criteria 258 7 A Blueprint for "Basel IV" 259 7.1 Risk Management 261 7.2 The Guardian Angel 269 7.3 Human Capital 275 7.4 Governance 287 7.5 Capital 291 7.6 Liquidity and Funding 299 7.7 The "Pillar 2" Mindset 303 7.8 Glasnost: Market Discipline and "Pillar 3" 311 7.9 Industry Structure 313 8 Challenges 327 8.1 Industry Entrenchment 327 8.2 Human Behaviour 329 8.3 Performance Management for Good Risk Management 332 8.4 Timing 333 8.5 A Positive Challenge: Technological and Social Progress 333 9 What Next? A Call to Arms 335 Glossary & Jargon Lookup 339 Disclaimer Regarding Excerpts from S&P Materials 349 Index 351
Autorenporträt
Inhaltsangabe"Better Banking by Adrian Docherty and Frank Viort is an outstanding introduction to the recent financial crisis. It starts from first principles and provides many useful new insights, delivering detailed case studies of the banks that got into trouble as well as critiques of past and proposed regulations. I recommend this book to those who want to learn the basics about banking crises and to those looking for a fresh and sophisticated perspective on risk taking by banks." Douglas W. Diamond, Merton H. Miller Distinguished Service Professor of Finance, University of Chicago Booth School of Business "Adrian Docherty and Franck Viort make a compelling and timely case for better banking. They provide a critical analysis of recent banking history and an informed challenge to those developing future policy. With the banking crisis far from over, Better Banking is required reading for all those with an interest in a sustainable financial system." Tim Wright, CEO, Willis International "Better Banking is a fresh and insightful primer on the financial crisis, based on first-hand experience of the banking industry. Docherty and Viort's blueprint for action is an entirely new contribution to the global debate on financial regulation." Benoît Coeuré, Member of the Executive Board, European Central Bank "This book is a page-turner on banking regulation, which in itself makes it a must-read. It goes beyond conventional wisdom and questions the very essence of what banks are here for in the first place. In that sense, it also has broader implications and I, for one, would very much like Adrian Docherty's and Franck Viort's ideas to be implemented in regulating the insurance sector and in the financial area more generally." Pierre Michel, DeputyCEO, Caisse Centrale de Réassurance / Former Insurance and Pension Funds Expert, European Commission "Docherty and Viort have a clear understanding of what went wrong in the financial crisis, and why. They also offer some thought provoking ideas for more robust bank regulation in the future. Furthermore, they write in an accessible and lucid way about complex problems." Howard Davies, Professor, SciencesPo / Former Chairman, FSA "Bankers and regulators should read this book. That way, they might get it right next time around" Adam Seale, CEO, Interactive I
